UK manufacturing activity hits 16-year high
The Chartered Institute of Purchasing and Supply (CIPS)/Markit manufacturing purchasing managers’ index (PMI) has today revealed UK manufacturing activity surged at a record pace in December.
The closely-watched CIPS/Markit manufacturing PMI rose to 58.3 in December from November’s revised reading of 57.5.
Not only was the reading the highest since September 1994, it confounded analysts expectations of a reading of 57.
Furthermore, the index continues to stay above the crucial 50 mark, which indicates expansion, and it has been above this level for 17 consecutive months.
Commenting on the figures, Rob Dobson, Senior Economist at Markit, said: “The UK manufacturing sector saw a truly spectacular end to 2010.
“On the downside, the other stand-out figure was a survey record increase in average input costs. Manufacturers in sectors such as clothing, food products and chemicals were hit hard by demand exceeding supply for certain key inputs, as well as rising energy costs,” he added.